Entrepreneurship – Fortunehttp://fortune.com
Fortune 500 Daily & Breaking Business NewsFri, 09 Dec 2016 13:38:34 +0000enhourly1http://wordpress.com/http://1.gravatar.com/blavatar/dab01945b542bffb69b4f700d7a35f8f?s=96&d=http%3A%2F%2Fs2.wp.com%2Fi%2Fbuttonw-com.pngEntrepreneurship – Fortunehttp://fortune.com
Fortunehttps://s0.wp.com/wp-content/themes/vip/fortune/assets/images/fortunelogo.pnghttp://fortune.com25040Overtime Rules in Limbo: What Businesses Should Do Nowhttp://fortune.com/2016/11/29/overtime-rules-limbo/
http://fortune.com/2016/11/29/overtime-rules-limbo/#respondTue, 29 Nov 2016 15:28:16 +0000http://fortune.com/?p=1868749]]>Months ago, business owner Michael Brey had an uncomfortable conversation with seven of his employees. Based on the new overtime rules issued by the Department of Labor in May, he told them he needed to shift them to an hourly work schedule from salaried positions.

Brey, who is president and owner of Hobby Works, a 35-employee gift and hobby store in Laurel, Md., says keeping those workers salaried would have cost him as much an $35,000 under the revised regulation–roughly equivalent to adding another employee.

Now it seems those conversations were all for naught. Last Tuesday, a federal judge in Texas granted a preliminary injunction against the rule. That means a new salary threshold for overtime that would have nearly doubled to $47,476 the level that's been in place since 2004, will not go into effect on December 1, as it was slated to do.

Any employee who earned under that amount would have been owed overtime, or time-and-a-half, for working more than 40 hours a week. The move was expected to increase wages and earnings for some 4.2 million workers, according to the DOL. Now that level will revert to the previous one of $23,600.

The sudden about-face has prompted anger and confusion on the part of small-business owners, who feel whipsawed after rushing to accommodate the new rules. Many had either increased salaries or shifted workers to hourly status, or made other decisions to try to constrain costs in the face of overtime changes.

"This is information I could have used three months ago," Brey says. "Psychologically, it felt like a demotion [for the employees], and people were a little upset."

Now things are likely to get even more confusing. The preliminary court injunction must first become an official injunction, which will require additional court hearings within the next 60 days, legal experts say. During that process, the Obama administration could decide to appeal the judge's decision to the U.S. Court of Appeals for the Fifth Circuit, which would have jurisdiction for this case. (Already the DOL has said it "strongly disagrees" with the court's decision, and is considering all of its legal options.)

Yet even on an expedited basis, an appeals court review could also take months. And while legal experts say they expect the appeals court, which reportedly tends to oppose the Obama administration, to uphold the lower court ruling, that can't be taken as a given.

The judicial skirmishing puts small-business owners in something of a bind, says William Tarnow II, chair of the labor and employment practice group at Neal Gerber & Eisenberg in Chicago. On the one hand, small-business owners who have not taken steps to comply with the December 1 deadline need do nothing for now.

However, should a higher court rule in favor of the new overtime threshold, business owners will then need to take action to comply going forward, Tarnow says.

Business owners who have already increased salaries, or switched workers to hourly status, now face the decision of whether to keep those changes in place, or switch employees back to their previous compensation, Tarnow says.

All of this unpredictability riles business owners like Bryan Pate, the chief executive of Elliptigo, an elliptical bicycle manufacturer with 22 employees, based in San Diego. This summer, he says he sat down with two workers to explain that, due to expense, changes to overtime regulations would force him to keep them as hourly staff, rather than shift them to salaried positions.

Now that decision, and the disappointment he says it caused his workers, is also in limbo.

"This once again forces me to spend time on something that is not helping out my business at all," Pate says. "The injunction just adds to the uncertainty of my business."

]]>http://fortune.com/2016/11/29/overtime-rules-limbo/feed/0PUB.03.15.16.grocery clerkjeremyquittnerClif Bar’s Former CEO Opens Up About the Emotional Toll of Entrepreneurshiphttp://fortune.com/2016/11/28/clif-bar-former-ceo-depression/
http://fortune.com/2016/11/28/clif-bar-former-ceo-depression/#respondMon, 28 Nov 2016 13:00:14 +0000http://fortune.com/?p=1865435]]>These days, it's becoming almost trendy for entrepreneurs to openly discuss their depression and other emotional afflictions. They're getting hip to what some researchers have known for a while: the same obsessive drive that makes a good entrepreneur also has a dark side.

Yet Sheryl O'Loughlin, the co-founder of Plum Organics and the former chief executive of Clif Bar, says this dark side needs to be addressed even more openly.

In fact, it's the subject of her new book, Killing It! An Entrepreneur's Guide to Keeping Your Head Without Losing Your Heart. In it, O'Loughlin, who has taught entrepreneurship at Stanford University, tells the tale of her own struggle with personal demons. She hopes those tales and her advice about running a business will start a conversation with other entrepreneurs, and entrepreneurs-to-be.

O'Loughlin, who is now CEO of herbal drink company REBBL, sat down with Fortune to discuss her book.

The following interview has been edited for grammar and clarity. The book will be released onDec. 6.

What was your motivation for writing the book?

O'Loughlin: I had these students who would come in with dollar signs in their eyes, and they were so excited to change the world with their companies. And that was incredible, but as an entrepreneur, there is the great light side, but also a dark side. When people hear about entrepreneurship in the media, it is all about this person who was a huge success [and] who made all this money. Students get the impression that is what it is all about. There is also drug abuse, divorce, depression, and suicide, and those are things that people don't talk very much about. Entrepreneurs tend to talk about it after they've already been through it, and they will say, "I had a really hard ride." I wanted people to understand this as they go into it, so it is not so scary.

Why do you suppose entrepreneurs have such tough time with depression?

O'Loughlin: As an entrepreneur, you are selling a vision in something that does not exist. You need investors to invest in it and employees to work for you when you can't pay anything. Part of our job is being optimistic and positive and sunny. But it's not only depression. We have a higher incidence of attention-deficit hyperactivity disorder and a higher propensity for drug abuse. The psychiatrist Michael Freeman says it's a spectrum. On the one side, entrepreneurs are obsessive and dedicated and persistent, and that is the light side. That’s what makes them good entrepreneurs. But if I am also this person who is obsessive, it can result in depression.

So is this a business book or a self-help book?

O'Loughlin: There are a lot of gaps this book is filling. Most business books are: Here's how you start a company. That's in Killing It, too, and this is part of the story. The other part of the story is life and the human experience of life. That is also connected to the experience of the startup. I go into romance, marriage, children, [and] friendship. I talk about physical and emotional well-being. All of these are important.

O'Loughlin: At the same time I co-founded Plum Organics, my husband started a company that was the antithesis of [fast food]. It was an indoor place to bring your kids, to have creative activities, and healthy food. The day it opened — it had been freezing cold — it was beautiful and sunny, and it stayed that way for a couple of months. Two months into this, he came home and was a white as ghost saying we had run through all the cash. We had to close the doors, with a $20,000 a month lease still on us.

I had also started Plum. And I had a really, really rough investor who would tell me I was the greatest CEO one second, and the next, he would berate me. I would be in a board meeting telephonically, and he would text me that everything I was doing was wrong. I had the stress of starting my company, the stress of this investor, and the stress of my husband who then could not get out of bed for two months because of his depression. I was holding it all together, and over time, I developed an eating disorder.

What have you learned from all of this?

O'Loughlin: I have learned how to make the right choices. I know that every moment does not mean the company will fall apart, and I don't tie [the company's success or failure] to my self-worth anymore. That is what creates these demons. I also know how to make the right choice on investors. You need to go through entrepreneurship with a partner who supports you through the ups and down. We can be a tribe of entrepreneurs, who are connected and talk to each other in ways we are not talking now. Think of entrepreneurship in terms of your life as a whole.

]]>http://fortune.com/2016/11/28/clif-bar-former-ceo-depression/feed/0unknownjeremyquittnerHow to Raise Kids to Be Entrepreneurshttp://fortune.com/2016/11/25/raise-kids-as-entrepreneurs/
http://fortune.com/2016/11/25/raise-kids-as-entrepreneurs/#respondFri, 25 Nov 2016 15:00:44 +0000http://fortune.com/?p=1863983]]>The media's fascination with young entrepreneurs gives off the impression that all of America's businesses are being run by messy-haired twenty-somethings who quit college and started their first company in their teens. The truth is, the number of businesses started by people 30 years and younger hasdeclined by 65% since the 1980s. This is an alarming statistic.

If we want to raise kids who think like entrepreneurs, we need to give them the space, creativity, and discipline to do so.

Ahead of Small Business Saturday, here are five lessons to help prepare your children for a successful career as an entrepreneur.

1. Land the helicopter

Our natural instinct as parents is to protect our children, often to their detriment. Let your children experience and embrace stress. The entrepreneurs of tomorrow are problem solvers. Empower your children to solve problems and overcome obstacles on their own. Give guidance when necessary, but let them fall on their face every now and then.

2. Help them learn to love work

Theunemployment rate of 20-24 year olds is the highest of any age group by almost double (excluding those younger than 19 years old). Lack of work experience only makes this problem worse. Encourage your kids to take any job opportunities they can find: waiting tables, pouring coffee, flipping burgers, or any other entry-level job. These types of jobs teach time management, interpersonal skills, and communication skills: the foundation for any successful entrepreneur.

Technology can hinder the development of basic communication skills, which are a learned skill. Bring your kids into adult conversations, adult situations, and push communication development at an early age. The steady shrinking of attention spans has made the ability to focus a huge challenge. Parents are helping kids give up on hard work, instead of pushing it. Encourage your children to finish everything they start.

The average Americanlost a third of their wealth in the most recent recession. Our children, whether Gen Z or Gen Y, have seen this firsthand. They've witnessed job loss. Encourage your children to work hard to keep and maintain their jobs. Don't give them an easy out and push them to succeed in the real world outside of living at home.

4. Advise them to think carefully about their major

Entrepreneurship is much more than just a concept; you must have a product or service to sell. With limited job exposure and work experience, students typically select majors based on guess work and then the career follows. Encourage your child to seek out mentors, career counselors, and job shadowing opportunities that can later be turned into a business.

5. Encourage them to take business classes

Taking a variety of business classes will make your children well-rounded. Encourage your child to take classes in finance, economics, and accounting so they can understand the inner and outer workings of a successful business. Focus on building experience. Find entrepreneurial internships and work for entrepreneurial companies. Entrepreneurs come from ideas, and ideas come from of exposure.

Matt Stewart is co-founder of College Works Painting, which provides business experience for thousands of college students each year. The award-winning program also offers high-quality house-painting services for homeowners.

]]>http://fortune.com/2016/11/25/raise-kids-as-entrepreneurs/feed/0Young girl adding profit from goodspolinamarinova15 Secrets for Getting the Most Out of Your Social Media Strategyhttp://fortune.com/2016/11/23/small-business-social-media-tips/
http://fortune.com/2016/11/23/small-business-social-media-tips/#respondWed, 23 Nov 2016 15:00:24 +0000http://fortune.com/?p=1864280]]>Antonia Opiah knows just how powerful a tool social media can be for a small business.

Opiah is the founder of Un’Ruly, a lifestyle website dedicated to black hair. Several years ago, she found herself in the spotlight after her controversial original documentary called "You Can Touch My Hair" went viral. With more than 700,000 views on YouTube, the film documented a public art exhibition held outdoors in New York City where three black women held signs encouraging random bypassers to touch their hair.

The idea was to start a conversation about the myths surrounding African-American hair. There was a conversation, alright. Not only did Opiah hear from the community face-to-face, but people sounded off on social media. And they weren't as excited about the conversation Opiah was hoping to have.

"The documentary was really polarizing," Opiah says. "To black people, it seemed as though we were exploiting black women. I understood that point of view, but I knew what was at the heart of what we were doing."

Opiah made the documentary in June of 2013 — shortly after she launched her website. Since then, the sole proprietor has effectively grown her customer base organically by interacting with her audience on every major social media platform. In just three years, Un'Ruly has attracted more than 10,000 followers on Twitter, 7,000 on Facebook, and 6,000 on Instagram.

She shared her tips on how small business owners can grow their brand through social media.

1. Consider joining a "Facebook Group"

If you have a small business, you likely have a dedicated Facebook Page where you share updates and promotions with your followers. However, the conversation tends to be one-sided and the community engagement is dependent on Facebook's changing algorithm, says Opiah. Opiah recommends joining a Facebook Group for better engagement with a community that cares about a niche topic relevant to your business. For her, it was hair care. "I've found that participating in those groups increases your chances of your content getting seen by the right people," she says.

When Opiah first started her business, she focused most of her attention on Facebook because it was the platform that drove the most traffic and revenue to her website. Today, her business has a solid presence on Twitter, Instagram, Pinterest, YouTube, Google Plus, and Tumblr. This is where the majority of entrepreneurs stumble, she says. "Don't bite off more than you can chew," she says. "There's always pressure to always be posting, but pick one or two social media networks that will serve your business well and focus on those. Don't start out by setting a schedule that's too ambitious."

3. Produce original content to drive revenue

Ideally, you should be a creator, and not just a curator. For small businesses that want to differentiate themselves from all the noise on social media, the key is to create original content that is in line with the brand's mission. "There are lot of brands that are simply just re-posting other pictures they find on the web, but what ends up happening is that profiles start to look the same," she says. Opiah recently launched an on-demand hair-styling service, and she only promotes it on Un'Ruly's Instagram profile through original photos and videos. It's important for the customers to have a visual of what service they are paying for, she says. She's been able to turn 25% of Un'Ruly's Instagram followers into customers. "Instagram is a glorified portfolio of our work," she says.

4. Don't forget that social media is meant to be social

Posting on social media and interacting with followers should never become mundane and formulaic, Opiah says. She carves out 10 to 15 minutes out of her day to post content that she feels will be interesting to her audience. "On days that I just genuinely don't have anything meaningful to share, I don't post," she says. "And I haven't seen a downside to that." Through her documentary experience, Opiah learned that people are vocal and they want to interact with the brand — whether it's to compliment or to complain. Either way, Opiah says entrepreneurs need to take the time to engage with the users who took time to engage with their business. "Resolve their issue or just give them more of a reason to love your brand," she says.

5. Stop apologizing so much.

When asked about the most common mistake she sees small business owners making on social media, Opiah says it's apologizing when they don't need to. "I think part of it is a result of living in this era of outrage," Opiah says. "It's futile to try and please everyone. Use your apologies carefully and wisely."

]]>http://fortune.com/2016/11/23/small-business-social-media-tips/feed/0#CDUdigital Conference In Berlinpolinamarinova15 TED Talks Every Business Owner Needs to Watchhttp://fortune.com/2016/11/22/ted-talks-small-business/
http://fortune.com/2016/11/22/ted-talks-small-business/#respondTue, 22 Nov 2016 15:00:30 +0000http://fortune.com/?p=1851723]]>When you're running a small business, the last thing you need is to waste time watching videos online. That is, unless those videos might help your bottom line.

In the days leading up to Small Business Saturday, the shopping holiday that encourages people to shop or dine at local independent businesses, entrepreneurs should take the time to re-examine their hiring strategies, set better goals, and create engaging social media campaigns.

Here are five innovative TED talks that can help.

On hiring the right talent

If you're about to hire a candidate with an Ivy league education, a perfect resume, and a glowing recommendation, pause for a moment. The person described is "the Silver Spoon," a candidate seemingly destined for success. But, as UPS human resources VP Regina Hartley asks in this TED talk, "If your whole life has been engineered toward success, how will you handle the tough times?"

In the hiring process, it's easy to overlook what Hartley calls "the Scrapper," the candidate whose experiences read like a patchwork quilt. "Take this resume," Hartley says to the audience. "This guy’s parents give him up for adoption. He never finishes college. He job-hops quite a bit, goes on a sojourn to India for a year, and to top it off, he has dyslexia. Would you hire this guy?"

She then reveals: "His name is Steve Jobs."

On leading a team through change

Reorganizations don't have to result in chaos. Organizational change expert Jim Hemerling says leaders need to be directive when leading their staff through a time of change and ensure everyone is on the same page. "In order to capture the hearts and minds of people, you also need to be inclusive," he says. The business landscape is constantly evolving, and Hemerling discusses five imperatives company leaders need to navigate it effectively.

On creating a social media strategy

Reddit co-founder Alexis Ohanian tells the story of how he used social media to get people to care about whales even though the majority of them were not whale lovers. His bottom line? Be genuine, be honest, and don't be afraid to lose control of your campaign. In fact, the key to a successful social media campaign requires you to relinquish control so the messaging does not come from the top down. Instead, Ohanian explains how staying true to your company's brand can turn a small social media campaign into an Internet sensation.

On losing control of your brand

Now that we've discussed what could happen when you lose control over a social media campaign, let's talk about losing control of your entire reputation. Though it might be a tough pill to swallow for an entrepreneur who has worked long and hard to build a reputable brand, marketing expert Tim Leberecht says you're bound to lose control because you've never really been in control in the first place. "What happens on Wall Street no longer stays on Wall Street," he says. "What happens in Vegas ends up on YouTube. Reputations are volatile. Loyalties are fickle." In this 6-minute TED Talk, Leberecht explains how losing control can help companies recalibrate their values.

On building a business that lasts

Strategist Martin Reeves says there's one statistic that will keep every entrepreneur up at night: The 32% chance that your company will not be around in five years. In this compelling TED Talk, Reeves explains how founders can build a dynamic and resilient business that lasts 100 years.

]]>http://fortune.com/2016/11/22/ted-talks-small-business/feed/04079606589_ef7531d4c9_opolinamarinova1This Company Delivers Honey Bees Straight to Your Homehttp://fortune.com/2016/11/18/honey-bee-home-delivery/
http://fortune.com/2016/11/18/honey-bee-home-delivery/#respondFri, 18 Nov 2016 19:25:27 +0000http://fortune.com/?p=1862730]]>In my hooded white suit, I must look like an astronaut who has crash-landed on the green roof of the Solaire, a residential building in Manhattan.

The reality is less strange, if not by much: The suit is to protect against stings. In front of me, beekeeper Tom Whitburn is slowly levering off the lid of a wooden box. Inside, I can see hundreds of golden honey bees crawling sleepily over the waxen honeycombs, waggling their antennae. Whitburn slides out an interior panel, and hands it to me. Coated in dense, dark honey, it's surprisingly heavy.

Whitburn works for Best Bees, a Boston-based startup that installs on-demand beehives. Founded in 2010 by bee researcher and enthusiastNoah Wilson-Rich out of his South End apartment —the company's first customer was his landlord — today it operates 660 beehives in and around nine U.S. cities, including Chicago, Los Angeles, New York, Seattle and Washington, D.C.

At first glance, Best Bees' very existence reads like a parody of the increasingly specialized on-demand economy:for $1,000 a year ($1,625 for businesses), the company delivers a classic Langstroth hive box, equipped with a colony of bees, plus an egg-laying queen. Included in that price: checkups from a local beekeeper who stops by once a month to make sure the hive is thriving and harvests the honey, which customers get to keep.

Airbnb, for example, has four hives installed in its San Francisco office; it uses the honey in its kitchen. So do a number of top hotels in Boston, New York and Denver.

That Best Bees aligns with this desire to eat locally, an increasingly popular trend in urban centers, has helped it grow into a sustainable business. It's been profitable for three years, and expects to make $1.3 million in 2016. It recently added Portland, Oregon to its service area, and also plans to bring Hawaii on board in the coming months.

But it's not just about the money. The company also has asocial purpose: save the bees.

A beekeeper inspects some Best Bees hives.

Between 2015 and 2016, the U.S.lost nearly half of its honey bee colonies, according toBee Informed Partnership, a bee industry research group. Prior to that, millions more hives disappeared due to a mysterious situation called colony collapse disorder, where entire bee communities simply disappeared, without leaving any bodies behind. While the spread of parasites, increased pesticide use, and loss of natural habitats likely contributed to the decline, experts still can't fully explain the drop off. Best Bees' hives are subject to some of the same alarming national trends, with 37.5% of its urban hive population and 60% of non-urban hives dying off or disappearing over time. The company replaces dead and sick hives.

"We explain to our clients that this is why we do what we do," Wilson-Rich says.Through its connected non-profit research entity, called the Urban Beekeeping Laboratory, the company is using its hives to do some detective work. Each time Best Bees employees check up on a hive, they use a mobile phone app, designed by the company, to record data like honey production, bee health, and colony size. The information is then analyzed, in hopes of determining causes for the decline. "Each beehive is a data point, and we manage them in a uniform way," Wilson-Rich says.

Already, there have been some surprising findings. For example, beehives in urban environments produce two to three times as much honey compared to their counterparts in areas with less development, likely because city parks and gardens provide a wider diversity of plants and flowers.

As is the case for most studies, however, determining a causal effect is difficult. Catherine Tucker, a professor of management science and marketing at MIT's Sloan School, worries the scientific data Best Bees collects may be skewed, as the hives typically will wind up in affluent areas, where people can afford the annual hive maintenance fee.

Wilson-Rich has thought of this, too. Recently, Best Bees launched a program through its nonprofit that allows donors to sponsor hives in less affluent neighborhoods, for example at schools, libraries and community gardens. Nearly 50 have been donated so far.

"From a social justice perspective, we want everyone to have access to bees," Wilson-Rich says.

]]>http://fortune.com/2016/11/18/honey-bee-home-delivery/feed/0wiggs_bees_392437jeremyquittnerimg_60244 Common Mistakes Young Entrepreneurs Make (And How To Fix Them)http://fortune.com/2016/11/18/common-mistakes-young-entrepreneurs/
http://fortune.com/2016/11/18/common-mistakes-young-entrepreneurs/#respondFri, 18 Nov 2016 15:00:49 +0000http://fortune.com/?p=1861696]]>Of all the companies founded each year, only a fraction survive. Even a smaller percentage of those make it five years. Clearly, building a company is no easy task.

As young entrepreneurs, perhaps the biggest advantage we have is an irrational sense of naivety that prompts us to rush into the "startup battlefield" and try to disrupt all forms of order. We compensate for experience with drive, hustle, and spirit.

If only reality were that romantic.

While there are tangible advantages to being a first-time founder, the disadvantages that appear are quite daunting. Like most things in life, experience plays a large role in dictating the success of your company. In a study on luck versus skill, Harvard researchers revealed that serial entrepreneurs of either a successful (or even unsuccessful) previous startup are more likely to succeed than first-time founders.

Though I have built a company and made my fair share of naive mistakes, I am still 19 years old and have lots to improve upon. I have spent hours and hours digesting and learning from some of the best founders, venture capitalists, and operators in the space.

While there is no prescriptive recipe that anyone can follow to build a successful company, it can still be incredibly valuable to learn from those have "been there and done that," which will help you avoid mistakes often made by young entrepreneurs.

Here are four common mistakes young entrepreneurs are guilty of making:

1. Waiting too long to launch

The biggest competitive advantage a startup has against big corporations is speed and adaptability. What that really means is small companies can iterate faster and make pivotal changes to their product without needing to worry about externalities that a big company would face.

Though this is a seemingly huge benefit to starting small, many founders often take their time to perfect their product.

Paul Graham, investor and YCombinator co-founder, shares his notes on this, saying that "the thing I probably repeat most is this recipe for a startup: get a version 1 out fast, then improve it based on users’ reactions. By 'release early' I don’t mean you should release something full of bugs, but that you should release something minimal."

It is best to get your product out into the wild as soon as you can so that you can begin testing assumptions before investing time and resources into a flawed product that no one wants.

2. Staying in control every step of the way

Every founder wants to play a part in all aspects of his or her beloved company, but this often leads to micromanaging. It stems from an irrational fear of relinquishing control. These bosses neglect hiring until they absolutely are forced to, and in doing so, sacrifice any odds of matching the right hire for the company.

Serial entrepreneurs recognize the importance and necessity of hiring the right team. They prioritize hiring from day one and engrain it in their company's culture. As soon as you realize that you can scale by hiring employees to do the work you are either not good at or do not like, your company begins to grow faster and your life gets easier.

Money is always on the mind of a founder, especially a young one who can be easily overwhelmed by the sheer quantity of important financial decisions that founders begin making early on.

A lot of those nerves come to fruition when startup founders begin raising money from investors and venture capital firms. There are so many questions — When is the best time to begin raising money? How much money should be raised for my seed round?

A big mistake that founders do not consider early on is the potential to raise too much to early.

Mark Suster, an investor at Upfront Ventures and former entrepreneur, shares this dilemma, "Every time you ask for money you're faced with the [possibility] of feeling literally and figuratively like a failure." He makes the case for not raising a surplus, saying that "constraints can spark creativity" and that being short on cash is not always a bad thing.

4. Keeping your idea a secret

The last thing you would want to do as a founder is build something that no one actually wants to use. The best thing you can do to avoid this calamity is to go out and talk to users from day one and get their raw opinion on your product.

Many first-time founders do the exact opposite and keep their ideas secret. "Stealth startups," while viable in some competitive spaces, are often doing themselves a disservice by not talking to customers and getting feedback early on.

Justin Kan, the founder of Justin.tv, Twitch, Exec, Socialcam, and now a YCombinator partner, is all about testing assumptions quickly.

When reflecting on one of his first companies, Kan said, "We thought that instead of talking to [customers] and finding out what they liked and didn't like about our existing service, we would continue to invent new features that we thought would be used even more than our existing features."

Kan's process to building companies is simple and cuts out distractions:

Step one: Gather data on customer problems. Step two: Form a hypothesis about how to fix that problem and build something that you think addresses it.Step three: Test your hypothesis by giving what you've built to your potential customers and getting feedback.

This simple framework is a great way to find real validation and build something that people actually want.

- Jordan Gonen is a 19-year-old that specializes in product growth.

]]>http://fortune.com/2016/11/18/common-mistakes-young-entrepreneurs/feed/0gettyimages-485205043polinamarinova1How to Travel the World and Keep Your Day Jobhttp://fortune.com/2016/11/17/how-to-travel-the-world-and-keep-your-day-job/
http://fortune.com/2016/11/17/how-to-travel-the-world-and-keep-your-day-job/#respondFri, 18 Nov 2016 00:00:11 +0000http://fortune.com/?p=1860351]]>What were the most exciting, fun and thrilling moments of your life?

Most people describe a trip where they pushed their comfort zone and grew. Yet, when posed with the opportunity to travel, most people have to say no because of work. In reality, anyone can travel extensively, but they have to know how to hack their work and be more productive.

As a human behavior scientist and author of The 2 AM Principle: Discover the Science of Adventure, I have traveled to over 40 countries and more cities than I could track. Many times, I did it while working a full-time job. Every month in 2013, I went to the most exciting event around the world, from Running of the Bulls in July to Burning Man in August. Anyone can pull this off (without getting fired) by applying four very important principles.

1. Set constraints that prioritize your time.

I'm a strong believer in clocking in the hours toward your success. In fact, every successful person that I know works a significant amount of hours each week. However, don't do work only to check it off your task list. There's always more to do. There's always another person you can contact or another meeting that you can schedule.

You have to draw a line in the sand. Each day, figure out the one task that is most critical. Ask yourself: If I only had one hour to work today, what would I do? This forces you to set constraints that prioritize your time.

People mistakenly view constraints as negative. Traveling every month while holding down a job was an ambitious goal, but the constraints of time and finances forced me to be creative in solving problems.

2. Create a more efficient system.

Most people work with tunnel vision. They pick a to-do item from their list and throw themselves at it, never asking questions or looking too far ahead. But, they should ask: "Should I be doing this?" and "Is it a valuable part of a system?" The most successful companies understand how to build efficient systems. Take a look at your life. Is it systemized?

3. Outsource and automate your responsibilities.

I became more productive after identifying responsibilities that should be outsourced or automated. Look at the all the activities that consume your time, and figure out if they are DIY (do-it-yourself) or DIFM (do-it-for-me).

At my company, almost 95 percent of our communication is done through a virtual assistant. I created a guide that explains how to handle every question and scenario that may arise. The time that was once wasted on tedious tasks is now used for strategy and valuable functions that require my presence.

4. The ship will keep sailing without you.

No matter the work, there is somebody that can do it better than you. Let go of the misconception that you're the only person that can keep the ship running. There are companies and websites that can help you with practically any project.

Professional consulting – Have one-on-one sessions with business and personal coaches at Less Doing.

Virtual assistants – Upwork has more than 12 million freelancers that specialize in everything from marketing and research to technical writing and video production.

Research – If you have specific research questions, go to Ask Wonder for answers or hire a researcher on Upwork.

Book publishing – If you want to publish a book, Book In A Box takes you through each step of the process. I haven't used them personally but I trust the team, and the people I know who have used them are raving about the experience.

Graphic design – If you need quick and inexpensive graphic design, go to Fiverr. For as little as $5, you can get any photo retouched or logo designed.

Traveling with a full-time job is possible. In fact, it will make you a more valuable member of any team, because you'll return rested with a wealth of world experience.

Jon Levy is a behavior scientist best known for his work in influence, networking and adventure. He is founder of the Influencers Dinner and author of a new book called The 2 AM Principle: Discover the Science of Adventure, where he shares science and stories on how to live a fun and exciting life.

]]>http://fortune.com/2016/11/17/how-to-travel-the-world-and-keep-your-day-job/feed/0Vacation People enjoy the view from Serles mountain on a sunny autumn day in the western Austrian village of Miederspolinamarinova1‘Brain Game’-Maker Lumosity Forges Ahead After Reaching a $2 Million Settlement for Deceiving Consumershttp://fortune.com/2016/11/16/brain-game-lumosity/
http://fortune.com/2016/11/16/brain-game-lumosity/#respondWed, 16 Nov 2016 16:01:18 +0000http://fortune.com/?p=1860236]]>For Lumos Labs, which makes the brain training app Lumosity, the year started on a sour note. Midway through the first week in January, the Federal Trade Commission announced it was suing the company for $2 million. Through its pervasive digital ads, TV spots, and radio voice-overs, Lumosity, the agency said, had peddled "unfounded claims" that users could reduce or delay serious cognitive conditions, including Alzheimer's, dementia, and ADHD just by playing its games.

Again, not the most auspicious start to 2016. Fast forward eleven months to present, however, and Lumosity isn't just still around — it's releasing new features. "The FTC never had issues with the quality of the product," says Steve Berkowitz, the company's recently-installed CEO (he joined in November 2015). "It was with the advertising language."

And so Lumosity continues making, and marketing, its products. In addition to playing the bank of 50-plus "brain games," users are now able to track how their performance changes over time, pinpoint their strengths and weaknesses, plus see how their scores compare to other users'. The idea originated with curious consumers, says Berkowitz. As such, it neatly aligns with his central mission: "Focus on the emotional connection people still have with our product."

Berkowitz contends the FTC lawsuit's effect was more of a ripple than a wave — "we saw very minimal refund requests for our product," he says — and that many users rallied around the company, expressing their support via calls and emails.

And yet it's hard to believe the settlement didn't have a significant financial impact. According to the FTC, Lumos Labs has sent more than 13,000 refund checks to subscribers, which adds up to over $1.9 million. (To qualify, consumers had to have spent at least $239 in subscription fees, which means the majority of paying players aren't eligible.) What's more, it forced the company to completely rebuilt its marketing efforts. Those ubiquitous ads inquiring whether you wanted to improve your brain's performance "with the science of neuroplasticity"? Gone. In their place — far fewer ads that must walk a fine line, at once highlighting that the games' are based in research, while refraining from explicitly stating that they offer any tangible cognitive benefits. Overall, it makes for a far less seductive sales pitch.

Berkowitz won't disclose if the company is profitable. He does say things are going well, pointing to its 85 million users as proof (although that includes subscribers, plus anyone who has downloaded the app, since the company was founded in 2007). And while Lumosity's website says it employs 160 people, Berkowitz says that number currently falls within the 120 to 130 range.

More broadly, a number of researchers have disputed the idea that playing brain games translates into any real-world value. In 2014, 70 prominent scientists published an open letter pushing back against the marketing claims made by companies like Lumosity. Shortly after, however, a group of 100 scientists wrote a response arguing that brain training's effectiveness was actually backed by some pretty solid evidence. Since then, additional high-profile studies have come out — including an article, published in the journal of Psychological Science in the Public Interest, which found no evidence that brain games improve everyday cognition — but the topic is still very much up for debate.

"There is disagreement in the research world — but that's what research is about," Berkowitz says. "There are always open questions." The company provides outside academics with access to its tools and data points, which have been incorporated into independent peer-reviewed studies.

While the methodology of some of its own, internal studies has been called into question — it's unclear whether playing a Lumosity game translates into cognitive benefits in real life — Berkowitz is convinced people will continue playing.

"In this age where information demands more of our minds and mental fitness," he says, Lumosity's products are "going to be more important than ever."

Yet as an entrepreneur, he's learned to discern between a calculated risk and a plain, dangerous one. A harrowing new documentary called "Don't Look Down," released today, shows how he learned that lesson.

The film chronicles the 31 hours in 1987 when Branson took on a potentially deadly challenge — crossing the Atlantic Ocean in a hot air balloon.

During his record-breaking journey of becoming the first to complete a transatlantic journey in a hot air balloon, Branson had a near-death experience. As he and his co-pilot tried to land the balloon in Scotland, they crashed into the ground, and the balloon bounced back over the Irish sea. The co-pilot jumped into the water but Branson stayed on and was lifted back into the clouds.

"I’d had an extraordinary life and it looked like this was the last two or three minutes of it," Branson says in the documentary. "I wrote a note to the kids, telling them how much I loved them."

Branson was rescued, and four years later, he completed a similar journey across the Pacific.

"If you're an entrepreneur, the most important thing is to make sure that even if the worst thing happens, you're not going to lose everything," Branson says.

Watch our interview with Branson above to learn more.

]]>http://fortune.com/2016/11/11/richard-branson-documentary-dont-look-down/feed/0unspecified-1polinamarinova1How Travel Made Me a Better Entrepreneurhttp://fortune.com/2016/11/10/how-travel-made-me-a-better-entrepreneur/
http://fortune.com/2016/11/10/how-travel-made-me-a-better-entrepreneur/#respondFri, 11 Nov 2016 00:01:06 +0000http://fortune.com/?p=1853635]]>I sat at that desk for two years and tried to convince myself that I was in the right place. But, there was no denying that corporate life wasn't right for me. I had a great job, a wonderful boss, interesting work, and fair pay. However, as a believer in lifestyle engineering — the idea that with the right systems, contacts, and work you can design the life you want — I knew that I needed to make a change.

So, I took on an audacious project: I'd go to the biggest events in the world every month for one year. I didn't know how I'd pay for it or where I'd go, but it was one of the best decisions I've ever made.

The beauty of travel isn't only the adventures you have or the wonderful people you meet but the person you become along the way. Travel made me a better entrepreneur, because I learned five critical lessons that I never would have in an office.

1. You're not that important.

In the early stages of startups, you may need to pull up your sleeves and do the work yourself. But, as soon as it's possible, start looking for tasks that you can outsource.

As I traveled, I noticed that projects would get done and problems would get solved without me. At times, I needed to jump on a call or answer an email. However, for the most part, if I planned ahead and showed people where to find the answers themselves, it was handled.

If you're comfortable with not always getting credit, empower others to solve problems on their own. You'll be able to dedicate more time to strategic functions, travel, and rest.

Identify which actions are leading to your success and deserve your time, versus those you are attached to but have no value. Checking off a task feels good, but it may be wasting your energy. This is where many entrepreneurs fall short, and as a result, they keep work habits long after they're useful.

3. Vacations prevent burnout.

Answering emails at 2 a.m. isn't making you a more successful entrepreneur. It is holding you back. Without proper sleep, productivity and creativity decrease dramatically. Our ability to gain enjoyment from the work we're doing diminishes.

Everyone has limitations. Burnout is real, and it will affect your ability to make decisions. Take care of yourself and get some rest.

4. Embrace novelty.

Getting exposed to other cultures and ideas produces creativity and inspiration. We are hardwired to respond to novelty. If you continuously stay within the familiar, your brain finds it less engaging. Novel and diverse experiences boost brainpower and make you more interesting.

If you want to connect with people, do interesting things. Traveling gives you incredible stories and perspectives worth sharing. I always have a couple stories ready for any social occasion or meeting and, as a result, people engage with me more.

5. Get out of your comfort zone.

As cliche as it sounds, the only way to grow is to step outside of your comfort zone. If it is something that scares you but won't kill you, do it.

Take a solo trip. I once intentionally visited Nice, France, with limited money and no place to stay in order to force myself to connect with people quickly. I met some great people who put me up for the night, and I learned more about myself.

No matter how busy you feel or what tasks you think you need to do, make the time to travel and explore. You'll return a more refreshed and effective entrepreneur.

Jon Levy is a behavior scientist best known for his work in influence, networking and adventure. He is founder of the Influencers Dinner and author of a new book called The 2 AM Principle: Discover the Science of Adventure, where he shares science and stories on how to live a fun and exciting life.

]]>http://fortune.com/2016/11/10/how-travel-made-me-a-better-entrepreneur/feed/0Oahu Hawaiipolinamarinova1How This 15-Year-Old Entrepreneur Balances School, Business and a Social Lifehttp://fortune.com/2016/10/28/haile-thomas-youth-health-happy-organization/
http://fortune.com/2016/10/28/haile-thomas-youth-health-happy-organization/#respondFri, 28 Oct 2016 21:34:25 +0000http://fortune.com/?p=1843012]]>Haile Thomas's resume is shiny enough to make any business leader jealous: she's given two TEDx talks and was a guest of First Lady Michelle Obama's at the 2013 State of the Union Address.

Thomas may only be 15, but over the past few years, she's become a fierce health advocate. After her father was diagnosed with type 2 diabetes, she and her family began implementing a healthy lifestyle regimen; her father reversed the disease.

With her mom's help, Thomas learned how to cook and launched her own youth health organization called HAPPY in effort to fight conditions like diabetes and childhood obesity.

"[My mom] saw the results that happened in our family and realized, along with me, that kids were lacking this information and resources to learn about healthy eating," says Thomas who was recently featured on Fortune's 18 Under 18 list.

In September, Thomas and her family moved from Arizona to New York in order to expand her business. She struck a partnership with Harlem Grown, a nonprofit that provides education in urban farming, sustainability, and nutrition. Thomas is also creating "HAPPY kits," boxes she will send to schools containing cooking class supplies for teachers and a learning management system for students. The Harlem Grown partnership gives Thomas access to six schools and more than 1,800 students.

When she's not working or studying, Thomas makes time for a social life by playing tennis, going shopping with friends or trying new restaurants.

And where does Thomas see herself in 20 years? ("Oh gosh that's really far away. I'd be 35? Jeez."). She plans to run a health coaching business, make her first million and expand her brand internationally.

Thomas joined Fortune for a new weekly series called Founder Friday. Watch this video to hear her insights on living a balanced life as a teen entrepreneur.

]]>http://fortune.com/2016/10/28/haile-thomas-youth-health-happy-organization/feed/0hailethomaspolinamarinova1Meet the Only Female General Partner at Alphabet’s VC Armhttp://fortune.com/2016/10/26/google-gv-avid-larizadeh-duggan/
http://fortune.com/2016/10/26/google-gv-avid-larizadeh-duggan/#respondWed, 26 Oct 2016 18:48:53 +0000http://fortune.com/?p=1840345]]>Avid Larizadeh Duggan is the only female general partner at GV, Alphabet's early-stage investment arm. Larizadeh Duggan is also only one of two women on the 15-person investing team.

But the London-based VC sees her gender as an advantage, not a detriment.

"As a woman, you do bring a different style to the table, you also bring a different perspective," she said in a Product Hunt live chat on Wednesday. "As a woman in this industry, you are often in the minority, there is no hiding that. It is important to note though that it is getting more balanced."

In 2015, Bloomberg's Emily Chang asked former GV chief Bill Maris why the firm only has one female general partner, and he said, "It's not good enough. Because we've failed. Because we haven't succeeded in finding women for that role, probably because it was easier to find men. That's not really a great answer."

During the chat, Larizadeh Duggan added that she was hired at the investment firm because of her experience, not her gender. Since 1998, Larizadeh Duggan has worked as an engineer, product manager, founder and investor. Prior to GV, she co-founded Boticca, an online marketplace for independent brands, which she sold to Wolf & Badger in 2015.

Here are a few of Larizadeh Duggan's insights on gender diversity, the London tech scene and startup fundraising.

On gender diversity in venture capital

"I am currently the only female GP at GV and we have a total of two women on the investing team. We also have a number of women partners across GV on the operations side. I see lots of advantages in being a woman in the venture industry. For example, as a woman you do bring a different style to the table, you also bring a different perspective. That's important both at the partnership level and board level.

"As a woman in this industry you are often in the minority, there is no hiding that. It is important to note though that it is getting more balanced. I also believe that there are cultures and teams who celebrate gender diversity and don't overemphasize gender differences. GV is one of those places. I don't believe I have been hired because of my gender but because of my experience and I believe my partners look at me as another one of their team mates who contributes with her own experience and knowledge."

"I am very excited about the London tech scene. There is a lot of innovation happening here across sectors, in fintech, in AI, in VR to name just a few. There are many seasoned entrepreneurs building great teams as well as new entrepreneurs benefiting from the expertise of a mature ecosystem (angel investors, VCs, corporates etc)."

On transitioning from a founder to an investor

"In an odd way, I transitioned twice and both were very much led by serendipity. Initially, when I first became an associate at Accel, it was almost reluctantly. I was looking to move to London after business school and 10 years in the US (I grew up in France) and wanted to work at a startup. So I contacted a number of VCs in London and my conversations with Accel turned from startup to VC. Initially, I pushed back saying that I thought I needed more experience (I had 5 years of operational experience) and was afraid I would miss working on teams building product. But I really enjoyed the team there and got convinced that it would be an incredible experience, which it was. However, my initial intuition was right and after two and a half years I decided to start my own company and go back to building a product and leading a team. When I left Boticca, the company I cofounded, I joined GV. Again it had a lot of serendipity to it, I met some of the team members at a tech dinner and really enjoyed our conversations. Ultimately, the team and culture won me over. And this time I felt much more prepared with the right skills to become an investor."

On advice for founders raising their first investment round

"I often tell founders looking for their first round to make sure there is a product/market fit from an investment perspective. What I mean by that is that they should look for investors who are likely to be a fit. Don’t target investors because of their brand name or because your friend got funding from them. Make sure that the investor you are approaching invests in your sector and the early stage you are looking at.

"Also, do your due diligence on that investor, is this someone that you are likely to want to work with for next few years? Do they have the expertise you need? You are going to be building one of the most important partnerships for your company with them. Also make sure you articulate why you are raising money. What will you be doing with that money? Is it to hire talent, is it for marketing?"

]]>http://fortune.com/2016/10/26/google-gv-avid-larizadeh-duggan/feed/0avid-larizadehpolinamarinova1Goldman CEO Jokes He Could Replace Entire Staff With These Entrepreneurshttp://fortune.com/2016/10/18/goldman-ceo-lloyd-blankfein-mpw/
http://fortune.com/2016/10/18/goldman-ceo-lloyd-blankfein-mpw/#respondTue, 18 Oct 2016 17:52:25 +0000http://fortune.com/?p=1831651]]>Listen up Goldman Sachs employees: CEO Lloyd Blankfein could replace you in a heartbeat.

When discussing the importance of social good and entrepreneurship at Fortune's Most Powerful Women summit on Tuesday, Blankfein pointed to Goldman's 10,000 Women program. The initiative provides female entrepreneurs around the world with capital, management education and mentoring resources.

Blankfein said the program's participants are "spectacular by any standard," and could do the job of Goldman's nearly 37,000 employees. "You could take the population of Goldman Sachs, brush them aside, give them a few more weeks of training, and we could replace them with this crowd."

No need to worry if you're a Goldman employee — Blankfein was kidding of course, adding "I said 'could,' but that would be a little bit of a radical step."

Two of the women who participated in the 10,000 Women program joined Blankfein on stage. Ciiru Waweru Waithaka is the founder of FunKidz Limited, a manufacturer of children's furniture and learning tools inspired by African stories. Through the program, Waithaka received a business loan to renovate her factory and double her production capacity.

Rima Koteish El-Husseini was also recognized at the MPW summit. She leads Blessing, a company specializing in chocolates and gifts for luxury events. El-Husseini co-founded the company with her sister and has expanded the business from Lebanon throughout other areas in the Middle East. She is now planning to expand to the U.S. and Europe.

"I believe that power is the ability to have a positive impact on people around you and to help them grow. This is also leadership," El-Husseini said.

]]>http://fortune.com/2016/10/18/goldman-ceo-lloyd-blankfein-mpw/feed/0Fortune Most Powerful Woman Summit 2016polinamarinova1Why Y Combinator Sam Altman Is Silicon Valley in a Bottlehttp://fortune.com/2016/10/18/y-combinator-sam-altman-silicon-valley/
http://fortune.com/2016/10/18/y-combinator-sam-altman-silicon-valley/#respondTue, 18 Oct 2016 14:40:25 +0000http://fortune.com/?p=1831107]]>I'm often a slow reader. It has taken me about two weeks, for instance, to finish Tad Friend's remarkable profile of Y Combinator head Sam Altman in The New Yorker. Amusingly titled "Adding a Zero" in print and "Sam Altman's Manifest Destiny" online, the piece is long (13 magazine pages), dense, and ambitious. It is also a delightful read. Indeed, Fortune's Nicholas Varchaver called it the "most pleasurable business feature" he'd read the week before last.

It's also maddening to devote all of these words to a 31-year-old, socially awkward futurist. Still, if you have a hankering to understand Silicon Valley in all its glory (and all its pity), I highly recommend you read this article. Y Combinator, YC for short, is an "accelerator" that invites classes of startup companies, called "batches," to go through its program and compete for funding from venture capitalists.

Get Data Sheet, Fortune's technology newsletter, where this essay originated.

Altman, a modestly successful entrepreneur himself before taking over YC, aims to be far more than a teacher of entrepreneurs. He is a master networker, a warrior for the battle for the human race against the destructive potential of artificial intelligence, and an empire builder. The ideas that come out of his mouth, without a trace of irony, are what make Silicon Valley simultaneously fascinating and tedious. For example, he wants to give every human a stipend once robots are doing all our work, a payment that "will free up that one person in a million who can create the next Apple."

Speaking of Apple aapl, an item in The Economist caught my eye the other day. At the urging of the prime minister of Italy, the smartphone maker has set up a new "app academy" in Naples. There must be 20 other regions of the world that will want one of those.

For more on Y Combinator, watch:

By the way, if you're not already reading Fortune's CEO Daily newsletter on weekdays for Alan Murray's insightful commentary and on Saturdays for Tory Newmyer's incisive analysis of Washington, you have another great reason to subscribe: Varchaver's weekly review of great business writing, which I referenced above. It will make you smarter. Maybe not startup-accelerator-chief smart. But still...

Founded in 2013, it's been able to remain free because it keeps its users' earned interest as a source of revenue. But while Digit has saved about a quarter of a billion dollars for its users, CEO Ethan Bloch says the company has earned only "a tiny amount" in the current interest-rate environment.

In order to one day become a profitable business, Digit plans to start testing new revenue models soon. This means the tool may not stay entirely free. "As we continue to build the product, our goal is to probably charge for premium services that we offer," Bloch says.

But of course, things are bumpy. In this week’s episode, co-founders Donna Clark and Cameron Howe are clashing over whether to use Swap Meet’s feature for processing credit card transactions. To Cameron, it’s a subpar solution that relies on the credit card companies’ code instead of being built entirely in-house. To Donna, it’s a solution that works well, is ready to go, and can be improved later when the company has the time and resources to rebuild it. As any startup knows, time is of the essence if Mutiny wants to continue growing fast.

Meanwhile, Joe McMillan is still working long hours with engineer Ryan Ray to figure out how his company will make money after promising Ryan he won’t change customers for the antivirus software. Here are some notable moments in this latest episode:

San Francisco as a symbol for the tech industry. "This city: I can’t decide if it’s beautiful or horrifying," Joe tells Ryan as they take a break on Joe’s home balcony.

"Nothing lasts in this place. The whole city burned down seven times in the first couple of years of its existence. Even its name has been reinvented," he tells Ryan of San Francisco’s cyclical nature.

Though the Santa Clara Valley, south of the city, was the originally hailed as the center of technological innovation, the tech industry eventually spread up to San Francisco. Still today, many talk about the transient nature of the city as people come in and out looking for startup success. And like San Francisco’s ebb and flow, the tech industry goes through booms and busts, and companies die as quickly as they were born seemingly every day, as we’ve seen on the show.

Though the main characters embarked on one entrepreneurial journey in the first season--building Cardiff Electric--by the second one, Donna and Cameron had moved on to Mutiny, Cardiff was dead, and Donna’s husband, Gordon, was working on his own short-lived project.

Ryan and Joe’s comments could be taken as a hint that things are about to significantly change for MacMillan Utility, or it could just be a simple reminder of the world in which they operate.

Joe’s health scare. It didn’t take long this season for the resemblance to Steve Jobs, Apple’s co-founder, to emerge. From his glasses and facial hair, to the unconventional employee requests, the pattern was clear. In this latest episode, Joe gets a health scare. Toward the end, he gets a call from a clinic with the results of his HIV test. The results themselves are unclear, but shortly after the call, Joe is seen smiling as he leans on his balcony. It could be because Joe is clear, but then again, it could be a sign that he’s making his peace with being HIV-positive.

In 2011, Steve Jobs died of respiratory arrest due to cancer, of which he was first diagnosed in 2003. If Joe is indeed HIV-positive, we’ll likely see how he balances his health and running his budding company, making difficult decisions along the way.

Donna and Cameron’s partnership unravels. In the previous episode, Cameron hints that she feels she’s losing her grip on Mutiny, her startup. This feeling only continues to grow after she disappears to Texas for a full week, leaving Donna to make decisions without her, something that visibly concerns her when she finally returns.

Things only get worse from there. After airing out their complaints with each other--Cameron doesn’t want to be left out of decisions, while Donna argues she couldn’t get in contact with Cameron and was therefore left with no other choice--the two seem to make up, vowing to always have each other’s back.

But Donna’s words may have been deceiving. That evening, when Cameron calls their main investor, Diane Gould, she finds out that, contrary to her assumption, Donna didn’t back up her wish to fire Swap Meet’s co-founders during a dinner Cameron missed. The realization sets in that not only is control over her company slipping away from her, but she may not be able to trust her co-founder anymore.

Unfortunately, stories of mistrust, backstabbing, and bad breakups between startup co-founders are nothing new in Silicon Valley.

]]>http://fortune.com/2016/09/14/halt-and-catch-fire-episode-5-recap/feed/0halt and catch firekiakokalitchevaThe Smartest Decision Makers Know How to Do Thishttp://fortune.com/2016/09/09/leadership-skills/
http://fortune.com/2016/09/09/leadership-skills/#respondFri, 09 Sep 2016 14:01:37 +0000http://fortune.com/?p=1791882]]>Do you question assumptions or simply accept them? Are your own beliefs cast in stone? What about commonly held beliefs? Do you accept them at face value?

It's one thing to say you seek the truth, but actively questioning assumptions, your own beliefs and common doctrine is another matter entirely. That requires a skillset known as critical thinking, a concept that dates back to the Greek philosopher Socrates and his eponymous method of challenging assumptions to reach logical and objective conclusions.

Critical thinking is as fundamental to business success as it's been to the advancement of technology and the advent of modern civilization. And yet, it's apparently in very short supply. Even in these highly enlightened times, an embarrassing number of popular myths gain wide acceptance among otherwise intelligent people.

Take the popular hype over emotional intelligence (EI), for example. EI has become such a sought after quality that it's almost a requirement for executives and business leaders. It has rapidly become ubiquitous on many job specifications. And some companies even consider it a necessity for all new hires to fit into their company culture.

Meanwhile, we have yet to see hard scientific evidence that EI is predictive of positive outcomes across a wide range of job functions. AsWharton professor Adam Grant points out, EI has a decidedly manipulative aspect that can easily be used to game the self-reported EQ tests and control others.

In terms of fads that are not the panacea they've been made out to be, EI is big but entrepreneurship must be the biggest. A popular myth of the modern business era is that, if you want to get ahead in life, you mustquit your job and become your own boss. Manyauthors and bloggers have made that dubious claim, and while it may be true for some, there's no way to know until after you've taken the plunge.

The truth is that most of us are simply not cut out for entrepreneurship. Whether it's running a startup, owning a small business or being self-employed, anyone who's been there will tell you that each of those scenarios has its own set of challenges and stresses. And there simply is no data or logic to support the assumption that you or anyone else will be better off one way or the other.

Besides, I know there are countless employees at companies like Apple, Google, Microsoft, Facebook and hundreds of great companies that love their jobs and do extremely well for themselves. Likewise, I wouldn't trade my 23-year career in the high-tech industry for anything. And yet, entrepreneur mania has gripped an entire generation.

When people abandon critical thinking, they make bad life decisions and fuel overhyped fads. When business leaders do it, the results can spell disaster.

We often talk aboutthe perils of hubris, but when CEOs who are smart enough to know better crash and burn, it's usually because they let their overblown egos overrule their intellect. They ignore logic and reason in favor of magical thinking. They draw erroneous conclusions based on unsupported beliefs. They let overconfidence veto their better judgement. That's how many companies fail.

If you want to know how the best CEOs make critical decisions on behalf of their companies, it comes down to critical thinking. These CEOs tell their management teams to be completely honest and forthcoming. They ask lots of questions. They ask for all the data. They challenge assumptions. They let them hash it out. They listen carefully. Sometimes they seek advice from trusted mentors. Finally, they trust their gut and make the final call. That's how the great ones make good decisions. So should you.

Steve Tobak is a management consultant, columnist and author of "Real Leaders Don't Follow: Being Extraordinary in the Age of the Entrepreneur." He runs Silicon Valley-based Invisor Consulting and blogs at stevetobak.com.

]]>http://fortune.com/2016/09/09/leadership-skills/feed/0175591101laurencovelloWhy I Banned the Word ‘Employee’ At My Restauranthttp://fortune.com/2016/09/03/davios-hospitality-tips/
http://fortune.com/2016/09/03/davios-hospitality-tips/#respondSat, 03 Sep 2016 18:00:30 +0000http://fortune.com/?p=1784399]]>The words you use to refer to your staff and customers can make all the difference in how they feel. Yes, humanizing your business is as simple as changing your vocabulary.

Because restaurants are places of hospitality. You're welcoming someone in who doesn't normally belong there, like you would a guest to your own home. The term "inner guest" conveys the idea that we should do the same for people who workat a restaurant. The same basic principle holds true — or should hold true — at any business, whether or not we normally think of it as a hospitality business. I don't care how successful you get as a business person — you must always keepthat element of hospitality. Here are three ways to make sure you have a well-managed business that pleases guests, keeps team members on their toes, and most importantly, stays open.

Get out of the office

As your company grows, you need to stay even more in touch with your people and your brand. And that means getting out of the of office. I don't have a desk of my own — just a leather bag full of papers that I carry around. When I meet with people, it's at a table I want to be where our guests and "inner guests" (employees) are.

In any large business, whether it's manufacturing, sales, or healthcare, leaders can't succeed if they hole themselves up in their executive suites, thinking they're above everyone else. There's no room for big egos. So if you're starting or growing a business, I advise that you lose the attitude, get in the trenches, and get your hands dirty.

Respond to every single email your employees send you.

Everyone at Davio's has my email address. They know I read what they send, and that I respond. I rotate through our restaurants every week, sitting down with staff at all levels to see how things are going. Yes, it's important to listen to the issues your people have, but it's even more important to take a personal stake in resolving them.

Invest in your people

The idea of the "inner guest" takes us beyond basic civility. There's an old saying that a family that eats together stays together. Restaurants obviously feed their paying guests, but I think they should feed their inner guests, too. We hold staff meals at 11 a.m. and 4:15 p.m. every day, free of charge. We talk, joke around, and have a great time. Does this cost us money? Sure, but we benefit, too. It's a lot easier for our people to serve guests well when they feel they are guests, too.

- Steve DiFillippo is chef/CEO of Davio's and author of It’s All About the Guest.

]]>http://fortune.com/2016/09/03/davios-hospitality-tips/feed/0549305461polinamarinova1Donald Trump Is Alienating an Entire Group of Entrepreneurs, Former Telemundo President Sayshttp://fortune.com/2016/09/01/donald-trump-entrepreneurs/
http://fortune.com/2016/09/01/donald-trump-entrepreneurs/#respondThu, 01 Sep 2016 14:00:11 +0000http://fortune.com/?p=1783756]]>Media mogul and entrepreneur Nely Gal?n launched her own media company, started a real estate business and served as the president of entertainment at Telemundo (making her the first Latina president of a U.S. television network). Gal?n created and produced the hit reality television program, La Cenicienta, and the Fox reality series, The Swan.

But most Americans probably know Gal?n from her 2008 appearance on the first season of Celebrity Apprentice with Donald Trump. "Donald Trump was the same argumentative person that we see now, but it was in the context of a reality show," she says. "I never would've thought in my wildest dreams it was going to be a political platform."

Gal?n, who emigrated from Cuba, says Trump is alienating a really powerful segment of the population - multicultural businesswomen. Minority women are the fastest-growing group of entrepreneurs in America, and Hispanic women-owned operations have reportedly increased by 87.5% since 2007. Though this may sound like good news, Black and Latino women-led businesses rarely get venture capital funding.

In her new book titled, SELF-MADE: Becoming Empowered, Self-Reliant, and Rich in Every Way, Gal?n discusses strategies to help women entrepreneurs find "hidden money" by applying for small business loans and taking advantage of government tax incentives.

For more of Gal?n's tips on how to become "self-made," watch the video above.